The GOP Debate at the Ronald Reagan Library

With Cuts, Trump’s HUD Targets Low-Income Families

A leaked copy of the Department of Housing and Urban Development’s (HUD) upcoming budget request presents a grim picture for the future of affordable housing in America. The draft shows over $6 billion being cut, representing almost 15 percent of HUD’s annual budget. If enacted, experts estimate over 200,000 low-income households will lose their rental support, and thousands more will be prevented from moving to an affordable situation.

What makes these cuts even more perverse is the “reverse Robin Hood” essence of their design. Despite the ubiquitous nature of Republican calls for a reduction in federal debt, the Trump administration currently has plans for massive tax cuts for the very wealthy. Along with an additional $54 billion in military spending—almost double what commanders have requested—the picture is clear. These cuts do not represent budget balancing, but rather budget priorities.

The depth and breadth of these cuts is overwhelming, both nationally and for the District. Below we break down several of the top targets for the chopping block and the functions they fulfill.

Community Development Block Grants

Community Development Block Grants, or CDBG for short, provides flexible money for localities to use in community development. In the District, CDBG money makes up 80 percent of the budget for the Home Purchase Assistance Program (HPAP), DC’s mortgage assistance program for first time homebuyers. As we have written countless times before, HPAP plays a vital role in building homeownership among DC’s low-income families.

CDBG actually has strong bi-partisan support. Republicans like it because it gives money back to local communities to use as they please, a core conservative tenet.

HUD’s proposed budget, however, would cut the program’s $3 billion budget entirely. That would leave cities and states across the country scrambling to cover myriad services that their residents depend on. In many cases, poor families would simply fall through the cracks.

Housing Choice Vouchers

Housing Choice Vouchers act as a sort of backstop for many low-income families. Under the program, households are able to find a rental property on the open market and be guaranteed to never spend more than 30 percent of their income on housing—whatever costs go above this are covered by the voucher.

The HUD proposal would cut $300 million from this program, leaving about 200,000 families without assistance. Sadistically, here the Trump administration looks to take money from veterans for the military—included in this program are housing vouchers targeting formerly homeless veterans.

Public Housing

In 2010, HUD released a report describing the desperate state of public housing in America. Those conditions remain unchanged today. Buildings are crumbling, and the conditions many families live in are deplorable. In that 2010 report, HUD estimated that it would need tens of billions of dollars in additional funding to catch up on overdue maintenance.

Instead, President Trump’s HUD has proposed cutting public housing’s maintenance budget by $1.3 billion, a third of its total value. The proposal also takes $600 million from the operating budget, ensuring that more problems will arise even faster as time goes on.

HOME Investment Partnership Program

Like CDBG, HOME represents a pot of money that localities can use in a variety of ways. DC typically uses its share to fund affordable housing construction, like MANNA’s Willowbrook Condominiums.

Yet again, faced with a nationwide affordable housing crisis and a program that gives local governments control of federal dollars, the Trump administration looks to pull the plug. HOME, like CDBG, would be entirely eliminated. Another billion dollars for affordable housing would be lost.

What to do

The good news is that none of this is final. This proposal represents a draft of what the Trump administration will present to Congress. Marshaling the opposition of lawmakers will be crucial, especially among Republicans who see the positive impact that these locally controlled dollars have in their own districts.

You can help make sure that these cuts don’t happen. Call your representatives and let them know that funding bombs and billionaires over low-income families is unacceptable.

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